Weak First Half and a Downgrade for Bega Group, but AUD 5.20 FVE Retained

That Bega's first-half fiscal 2023 result was weak is not particularly surprising given the impact of cost inflation on the business. However, it was weaker than expected, particularly in the branded segment. Partly this reflects the pricing cycle and the impact of rising raw materials costs on Bega. But it is also a reflection of Bega's inability to timely renegotiate prices and the importance of powerful supermarket customers to Bega's profitability. Adjusted net profit after tax for the first half of fiscal 2023 declined 74% to AUD 10 million or 2.7 cents per share compared with the same half in fiscal 2022.